Parent Company Financial Information

12 Months Ended

Dec. 31, 2019

Parent Company Financial Information [Abstract]

NOTE P – PARENT COMPANY FINANCIAL INFORMATION

Condensed financial information for the Corporation (parent company only) is as follows:

CONDENSED BALANCE SHEETS



	December 31,
(in thousands)	2019		2018
Assets:
Cash and due from banks	$	1,719	$	583
Investment in subsidiary bank, at equity		388,965		390,388
Prepaid income taxes		805		—
Deferred income tax benefits		1,917		1,924
Other assets		25		80
	$	393,431	$	392,975
Liabilities:
Other liabilities	$	15	$	332
Cash dividends payable		4,308		4,456
		4,323		4,788
Stockholders' equity:
Common stock		2,393		2,542
Surplus		111,744		145,163
Retained earnings		274,376		249,922
		388,513		397,627
Accumulated other comprehensive income (loss), net of tax		595		(9,440)
		389,108		388,187
	$	393,431	$	392,975

CONDENSED STATEMENTS OF INCOME



	Year ended December 31,
(in thousands)	2019		2018		2017
Income:
Dividends from subsidiary bank	$	55,750	$	15,525	$	11,150

Expenses:
Salaries		3,050		1,814		2,434
Other operating expenses		442		343		406
		3,492		2,157		2,840

Income before income taxes		52,258		13,368		8,310
Income tax benefit		(755)		(1,442)		(1,235)
Income before undistributed earnings of subsidiary bank		53,013		14,810		9,545
Equity in undistributed earnings		(11,458)		26,763		25,577
Net income	$	41,555	$	41,573	$	35,122

Comprehensive income	$	51,590	$	31,864	$	37,272

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CONDENSED STATEMENTS OF CASH FLOWS



	Year ended December 31,
(in thousands)	2019		2018		2017
Cash Flows From Operating Activities:
Net income	$	41,555	$	41,573	$	35,122
Adjustments to reconcile net income to net cash ‎ provided by operating activities:
Dividends in excess of earnings of subsidiary bank		11,458		—		—
Undistributed earnings of subsidiary bank		—		(26,763)		(25,577)
Deferred income tax provision (credit)		7		(543)		167
Stock-based compensation expense		3,050		1,814		2,434
Increase (decrease) in other liabilities		(119)		307		5
Other decreases (increases)		(815)		1,619		(1,383)
Net cash provided by operating activities		55,136		18,007		10,768

Cash Flows From Investing Activities:
Capital contributions to Bank subsidiary		—		(19,000)		(20,500)

Cash Flows From Financing Activities:
Repurchase of common stock		(38,171)		(1,541)		—
Shares withheld upon the vesting and conversion of RSUs		(854)		(774)		(527)
Proceeds from exercise of stock options		452		312		917
Proceeds from issuance of common stock, net		1,822		18,239		22,598
Cash dividends paid		(17,249)		(15,585)		(13,703)
Net cash provided by (used in) financing activities		(54,000)		651		9,285
Net increase (decrease) in cash and cash equivalents*		1,136		(342)		(447)
Cash and cash equivalents, beginning of year		583		925		1,372
Cash and cash equivalents, end of year	$	1,719	$	583	$	925

Supplemental Schedule of Noncash Financing Activities:
Cash dividends payable	$	4,308	$	4,456	$	3,798

* Cash and cash equivalents is defined as cash and due from banks and includes, among other things, the checking and money market accounts with the Corporation’s wholly-owned bank subsidiary.

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